Podcast sponsorship is one of the main ways to monetize your content, as brands increasingly embrace podcast ads for target marketing.
In fact, more than 50% of marketers currently use podcast ads to reach niche audiences. More brands are expected to embrace podcast ads considering the rapid growth in the number of podcast listeners.
As such, this is an opportune time to optimize your podcast to appeal to potential sponsors.
This article provides an in-depth guide about sponsorships for podcasts.
Looking to increase your podcast sponsorship deals? Use Hello Audio to grow your audience and engage listeners to appeal to brands.
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TL;DR – How to Get Podcast Sponsors
Only got a minute? Here are the essentials we will cover in detail throughout our blog:
- There are three main types of sponsorships to monetize your podcast, which include cost per mille (CPM), cost per action (CPA), and value-based.
- Different factors influence the podcast ad rates, such as your audience size and podcast niche.
- The 4 steps to get a podcast sponsor are creating a podcast media kit, joining a podcast network, participating in your industry events, and crafting a personalized pitch.
How Podcast Sponsorship Works?
Podcast sponsorship works primarily like other sponsorship deals: a brand (sponsor) pays to be featured in an event (podcast).
If you are a regular podcast listener, you have probably heard the following phrase:
“This podcast episode is brought to you courtesy of XYZ. Are you looking to buy…. Reach out to XYZ’s sales office or order on their website and use my special code ABC10 for a 10% discount.”
Usually, the creator is in a sponsorship deal with the brand they are advertising on their podcast.
Podcast Sponsorship Examples
Are you curious about how creators partner with brands? Below are three real-world examples of podcast sponsorships.
J.P. Wiser’s Sponsors ‘Conan O’Brien Needs a Friend’ Podcast
J.P. Wiser’s, a Canadian distiller, partnered with the Conan O’Brien Needs a Friend Podcast to promote its whisky. The ad is host-read to leverage Conan’s influence and sway listeners to try the whisky brand.
As such, Conan likely charged a higher CPM than he would for a standard ad.
Armra Works with ‘You Made It Weird with Pete Holmes’
The host, Pete Holmes, starts the podcast ad by discussing Armra Colostrum’s benefits.
The ad is placed at the beginning of the podcast, making it a pre-roll ad. Including an affiliate link could mean Pete has a cost-per-action sponsorship deal with Armra.
Progressive Insurance Sponsors ‘Life Kit’ Podcast
The Life Kit podcast includes a standard ad highlighting the benefits of switching to Progressive Insurance.
The ad is inserted before the main podcast segment, making it a pre-roll placement. Also, it is not host-read, making the CPM rates likely lower than the other examples highlighted in this section.
Types of Podcast Sponsorships
There are three types of sponsorships that you can incorporate into your podcasts. Let’s discuss them below:
1. Value-Based Model
A value-based model lets you earn revenue proportional to your overall impact on your sponsor’s brand. It often involves a flat rate you can receive per episode, season, or other agreed period (quarterly or yearly).
The main advantage of pursuing a value-based sponsorship is knowing exactly how much you will earn from the deal.
2. Cost Per Mille
A cost per mille (CPM) sponsorship deal means you receive compensation for every 1,000 people who listen to your podcast. There are three types of ad placement under the CPM model:
- Pre-roll: Ads placed before the main content.
- Mid-roll: Ads slotted during the main segment.
- Post-roll: Ads placed at the end of an episode.
The main advantage of the CPM model is that your earning potential increases as you grow your audience.
3. Cost Per Action
The cost-per-action (CPA) model works like an affiliate marketing program. It involves partnering with a brand to promote its product(s) on your podcast and including an affiliate link in the episode description.
The CPA model is suitable if you have a popular podcast and receive high engagement from your audience.
List of Brands That Sponsor Podcasts
Did you know that some brands spend millions on podcast sponsorships annually?
Below is a list of the top brands that sponsor podcasts:
- BetterHelp
- Mint Mobile
- Shopify
- VGW Holdings
- McDonald’s
- PureTalk
- Monday.com
- Capital One
- Squarespace
- AT&T
Did You Know: BetterHelp, a teletherapy service, paid $25.6 million in Q4 2023 and $24.6 million in Q1 2024 for podcast ads.
Factors that Influence Podcast Ad Rates
“I have a decent audience, and brands have approached me for potential sponsorship deals. But how do I set my podcast ad rates?”
This is a common question we encounter among creators.
We have prepared a table to illustrate how different factors influence what you should charge potential sponsors.
| The number of monthly listeners who stream your podcast. | <10,000 listeners: $10 -$25 CPM >100,000 listeners: $25 – $40 CPM |
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| Relates to your podcast’s specificity or niche’s complexity. | General: $10 – $20 CPM Moderate: $15 – $30 CPM Highly specialized: $50 – $100 CPM |
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| Where an ad is inserted within an episode. | Pre-roll: $15 – $25 CPM Mid-roll: $25 – $40 CPM Post-roll: $10 – $20 CPM |
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| The length of the inserted ad. It can be 15 seconds, 30 seconds, 60 seconds, or longer. | 15 seconds: $7 – $15 CPM 60 seconds: $25 – $40 CPM |
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| The sponsor requests exclusive access to your podcast ads. This means you cannot partner with other sponsors during that period. | Exclusive ads: $40 – $150 CPM Non-exclusive ads: $15 – $40 CPM |
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| Involves fluctuations in demand for podcast ad slots based on the time of the year. The demand is higher during peak seasons (Christmas, Black Friday, and Thanksgiving) than during off-peak periods (rest of the year). | Peak season: $30 – $75 CPM Off-peak season: $15 – $30 CPM |
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| Involves ads that target specific regions or demographics. The ad rates may vary when targeting developed vs developing markets. | Developed markets: $25 – $50 CPM Developing markets: $7 – $20 CPM |
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| The sponsor requests that you use your influence to convince clients to ‘take action.’ | Standard ad: $20 -$40 CPM Host-read ad: Add a 30% margin. |
Sources: independentpodcast.network, influencermarketinghub.com, adresultsmedia.com, eofire.com
How to Make Your Podcast Appealing to Sponsors
Do you need help attracting podcast sponsorship deals? Below, we outline ways to improve your podcast to make it more appealing to potential sponsors.
Grow Your Audience
Growing your fan base is the most organic way to appeal to podcast sponsors. A vast audience attracts multiple sponsors, giving you control over which brands to partner with.
Leverage various podcast promotion strategies to attract new listeners and build a community. For instance, join Hello Audio to publish your content on major podcast directories.
Enhance Your Podcast’s Structure
Use a consistent episode format and podcast structure for higher listener retention. For example, all your podcast episodes include an intro, mid-show break, and outro.
Also, have a script for your podcast segments and transitions. Lastly, adhere to your pre-determined episode length.
These changes give your podcast a professional look, which can help attract sponsors.
Focus on a Specific Niche
Establish your podcast as a thought leader or opinion shaper in a specific field. Catering to a niche audience creates opportunities for target marketing.
To achieve this, deliver high-quality content that is appealing and relevant to your listeners. Also, keep tabs on new trends and advances in your niche and provide well-researched commentaries.
How to Get Sponsors for a Podcast
There are various ways to secure sponsorship deals for your podcast show. Let’s outline them below:
1. Showcase Your Podcast Metrics
Prepare a detailed media kit that showcases your podcast metrics and highlights your unique selling points. Below are essential metrics to highlight:
- How many people listen to and download your episodes?
- What percentage of listeners click on your links?
- Do listeners share your episodes on social media?
We also recommend highlighting your podcast sponsorship success stories, if available. Showcase brands you have worked with and how your podcast has helped them achieve their marketing KPIs.
2. Join a Podcast Network
Joining a podcast network is a great way to access sponsors, especially for small and upcoming creators. The networks function as middlemen by securing sponsorship deals and offering them to you at a commission.
Signing up for a podcast network also increases your visibility to potential brands, which might approach you directly for sponsorship.
3. Targeted Outreach
Identify and research brands whose products or services align with your podcast. Next, craft a personalized pitch highlighting how a partnership would benefit them.
You can also include a rate card to showcase your marketing packages and ad pricing. Offer reasonable rates to ensure potential sponsors get value for money. Alternatively, propose a performance-based deal where sponsors compensate you based on KPIs.
4. Attending Niche-Specific Events
Participate in industry events to network with potential podcast sponsors. For example, suppose your podcast covers topics on climate change and global warming. You could attend the annual U.N. Climate Change Conference, where you can approach brand representatives, activists, and other environmental conservation ambassadors and propose possible partnership deals.
Some events allow creators to set up booths for one-on-one interactions with brands. Research the represented brands in advance and curate a convincing pitch for the brands you want to work with.
Getting Podcast Sponsors from Ad Networks vs. Direct Deals
When considering podcast sponsors, you have to evaluate the pros and cons of direct sponsorships and podcast ad networks.
Let’s look at the pros and cons of each:
| * Provide a consistent income stream compared to looking for individual sponsorships. * Make everything easy, including finding sponsors, inserting ads, ad sales, and billing. | * Limited creative control over the ads since they’re pre-produced and are dynamically inserted with little of your input. * No relationship with the brands. * Lower CPM rates than the host-read ads. |
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| * Keep 100% of the sponsorship revenue. * High control over the custom ads and where to insert them. * Direct relationship with the brands, allowing you to check if the sponsors are a good fit. * Negotiable terms with the sponsor. | * Require a lot of effort to pitch, create, and deliver the custom ads. * Income can be seasonal, creating revenue gaps. |
Best Practices for Building Long-Term Podcast Sponsorships
You need a strategic approach to attract and keep your sponsors.
Here’s how you can have long-term brand sponsorships:
- Understand the Audience: It’s crucial to understand your audience demographics and your listeners’ behavior. With this data, you can grow your podcast and attract long-term partners that align with your brand.
- Create a Professional Media Kit: You should build a sleek media kit to help your sponsors understand your podcast’s purpose and why they should work with you.
- Focus on Authenticity: Focus on partnering with relevant brands that align with your defined audience.
- Stay Consistent and On Time: Don’t focus solely on numbers; instead, aim to release podcasts regularly and create high-quality audio content. The relationship with your audience and the trust they have in your show will allow sponsors to keep streaming in.
- Maintain a Relationship with Sponsors: Once you’ve secured sponsorship deals, you should ensure the ads clearly feature the sponsor’s offerings, while still resonating with your audience. Also, be open to implementing changes to strengthen your relationships with the sponsors and create long-term partnerships.
- Check the Long-term Performance: Your performance, such as click-through rates, listener social media responses, and promo code redemption, will determine whether you qualify for long-term deals. So, track the ad results and suggest improvements for future campaigns.
Podcast Sponsorship Trends and Future Opportunities
Looking ahead, what will shape podcast sponsorships? Check out the key emerging trends below:
- Video Podcasts Ads: With the growing rise of podcasts on platforms like YouTube, there’s a massive potential for visual ads.
- Localized Sponsorships: Brands want more local sponsorships that are culturally relevant and resonate more with their diverse audience.
- Artificial Intelligence (AI): AI will revolutionize podcast sponsorships, where you can analyze your listener behavior and preferences to deliver tailored ads that are relevant and engaging.
Use Hello Audio for Private Podcasting
Private podcasts are a great way to build a community around your brand and attract sponsors. However, you need an effective hosting service to create and manage them, which is where Hello Audio comes in.
Use our platform to easily repurpose content with private podcasts and give massive value to your listeners.
Convert your old media files, including webinars, behind-the-scenes interviews, and online courses, into private podcasts your audience can listen to on the go. Additionally, use Hello Audio to manage access to the content, such as placing the private podcast feed behind a paywall.
Once you grow your audience and attract sponsors, use Hello Audio for dynamic ad insertion. Place your sponsor’s ads as pre-, mid-, or post-rolls to maximize listener engagement. You can also leverage our platform’s automated actions to recommend episodes with related content and ads.
Check out our instant demo for a detailed video guide on using Hello Audio to grow your podcast and attract sponsors.
Frequently Asked Questions (FAQs)
This FAQ section provides answers to the most frequently asked questions about podcast sponsorships:
How Much Do Podcast Sponsors Pay?
The revenue you generate from podcast sponsorships mainly depends on your audience size.
Suppose your podcast has 5,000 listeners. If you have a $20 CPM, you should earn about $100 per episode. Publishing two episodes weekly would mean $800 per month.
What Are the Average Podcast Ad Rates?
The average podcast ad rate ranges from $15 to $50 per 1,000 downloads. However, rates also depend on factors like ad length and placement.
For example, standard ads are 30 seconds long, but sponsors could request longer slots (say 60 or 90 seconds), allowing you to charge more for the extra air time.
Does Audience Size Matter for Podcast Sponsorship?
Yes. Audience size influences podcast sponsorship in two ways.
- First, brands are more likely to pick podcasts with considerable audiences to increase their reach.
- Second, a sizeable audience helps you negotiate better rates.
Can I Have Multiple Sponsors in One Episode?
Yes, you can have multiple sponsors in one podcast episode. Here are the top tips to do so:
- Have a long episode to incorporate multiple ads naturally.
- Focus on growing your listenership so that various brands will be willing to share space.
- Have different ad types for each sponsor.
- Create ads in non-competing niches to avoid confusion.
How Long Does It Take to Land a First Podcast Sponsor?
The time it takes to land your first podcast sponsor depends on several factors:
- If your podcast is new, you might take approximately 6 months or longer to build trust and credibility.
- If your podcast is established, it would take approximately 3 months or less to attract niche sponsors.
Conclusion
Podcast sponsorships are an opportunity to increase your revenue streams. However, you must continuously improve your podcast to attract potential sponsors.
You can use Hello Audio to repurpose content into private podcasts and also simplify podcast ad placement.
Our hosting service helps you increase your listener count and boost engagement to appeal to brands. With our dynamic ad placement, you can also deliver value to your sponsors and maximize your podcast earnings.
Take the first step towards attracting podcast sponsors. Sign up for our 7-day free trial — no credit card required!
